PROBLEMS IN ACCOUNTING FOR THE EXCHANGE OF PROPERTY, PLANT AND EQUIPMENT IN SMALL AND MEDIUM-SIZED ENTERPRISES

Abstract

The main purpose of the study is to investigate the relevance of asset exchange in small and medium-sized enterprises in terms of tax accounting and financial reporting and the problems associated with asset exchange in the application of accounting rules. Section 17 of the International Financial Reporting Standard for Small and Medium-sized Enterprises and, accordingly, the articles related to asset exchange in the accounting rules, as well as the articles covering this topic in the Tax Code, were compared to highlight inconsistencies in practical application.
The research methods are based on generalization, analysis, comparisons based on examples. The provisions on determining the correct value in the exchange of assets and the differences and areas of application of valuation methods, in particular fair and market value, were analyzed on examples. The practical significance of the study is in simplifying the relevant provisions, especially considering the cost of valuing assets at fair value, especially in market conditions and under conditions of limited resources, by applying various methods for valuing assets in the International Financial Reporting Standards and the Tax Code, minimizing the impact on financial statements of the practice of valuing assets at market value in tax audits, and determining the importance of determining the correct value in asset exchanges and reporting in accordance with standards.